Over the past 18 months roughly twenty fund houses — Aditya Birla Sun Life, Axis, Bandhan, HDFC, ICICI Prudential, Kotak, Nippon India and others among them — have launched near-identical products under a new label: Income Plus Arbitrage. Structurally, each is a fund-of-funds. It holds units in the house’s own short-term debt fund on one side and units in its own arbitrage fund on the other, typically split somewhere between 35:65 and 65:35, and rebalances between the two as conditions change.
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